The beginning balances of inventory account and allowance for inventory write-down account of JAMES Inc. is ₱230,000 and ₱10,000, respectively. Inventory purchases for 2022 total to ₱2,445,000, including cash purchases of ₱866,000. Purchases returns from cash purchases total to ₱50,000, while returns from purchases on account total to ₱80,000. Purchase discounts availed by the company is ₱200,000. Inventory as of December 31, 2022 total to ₱360,000, with an estimated selling price of P400,000. Costs expected to be incurred to sell the inventory is 15% of the selling price. How much is the cost of goods sold for 2022? [A] 1,975,000 [B] 1,985,000 [C] 1,995,000 [D] 2,005,000
The beginning balances of inventory account and allowance for inventory write-down account of JAMES Inc. is ₱230,000 and ₱10,000, respectively. Inventory purchases for 2022 total to ₱2,445,000, including cash purchases of ₱866,000. Purchases returns from cash purchases total to ₱50,000, while returns from purchases on account total to ₱80,000. Purchase discounts availed by the company is ₱200,000. Inventory as of December 31, 2022 total to ₱360,000, with an estimated selling price of P400,000. Costs expected to be incurred to sell the inventory is 15% of the selling price. How much is the cost of goods sold for 2022? [A] 1,975,000 [B] 1,985,000 [C] 1,995,000 [D] 2,005,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The beginning balances of inventory account and allowance for inventory write-down account of JAMES Inc. is ₱230,000 and ₱10,000, respectively. Inventory purchases for 2022 total to ₱2,445,000, including cash purchases of ₱866,000. Purchases returns from cash purchases total to ₱50,000, while returns from purchases on account total to ₱80,000. Purchase discounts availed by the company is ₱200,000. Inventory as of December 31, 2022 total to ₱360,000, with an estimated selling price of P400,000. Costs expected to be incurred to sell the inventory is 15% of the selling price.
How much is the cost of goods sold for 2022? [A] 1,975,000 [B] 1,985,000 [C] 1,995,000 [D] 2,005,000
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